Bank capital adequacy ratio reached 18.9 % in 2016 in Algeria, according to the National Central Bank.
This is
1.14 %
more than
in the previous year.

Historically, bank capital adequacy ratio in Algeria reached an all time high of 26.2 % in 2009 and an all time low of 16.0 % in 2014.

Algeria has been ranked 45th within the group of 121 countries we follow in terms of bank capital adequacy ratio.

The capital adequacy ratio is the proportion of capital to the bank's risk-weighted assets.

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The capital adequacy ratio is the proportion of capital to the bank's risk-weighted assets. Basel II requires the total capital ratio to be no lower than 8%. Banks are required to hold a minimum amount of capital for a certain level of assets through regulatory agencies such as the Bank for International Settlements, Federal Deposit Insurance Corporation or Federal Reserve Board. These requirements were put into place to ensure that these institutions are not participating in or holding investments that increase the risk of default and that they have enough capital to sustain operating losses while still honouring withdrawals.